NEW YORK (CNN/Money) - John Thain, CEO of the New York Stock Exchange, announced major reform plans for the New York Stock Exchange Thursday and said the world's largest stock market will not sue former CEO Dick Grasso over his lavish pay package.

The exchange will also expand its electronic trading capabilities. Thain said the Big Board aims to be customer sensitive and responsive, and is proposing the rule changes to address customer concerns.

The board approved eliminating two trading restrictions in the current rules, which specify that consecutive orders must be spaced 30 seconds apart and that trades must be limited to the size of 1,099 shares. If approved by regulators, the proposals will effectively speed up trade executions on the Big Board -- a long-standing wish of some institutional investors.

The exchange said its specialists -- firms that use their own capital to buy and sell specific listed stocks on the trading floor in order to dampen periods of volatility -- would continue to handle larger, more complex trades.

The NYSE also will seek approval to make market orders eligible for trading through the electronic system. Right now, only limit orders are eligible.

"The NYSE is by far the largest market, it is the most liquid market, we have the best price 93 percent of the time, but one of the things we're not is the fastest. And some of the big institutional customers have said they want the ability to trade quickly and with a high degree of certainty and we're going to give them the ability to do that," said Thain.

The NYSE also plans to cut executive compensation 10 percent to 20 percent this year.

Excessive pay for top executives became a big issue when the public learned that former Big Board head Dick Grasso was awarded a $187.5 million package for deferred pay and retirement.

The NYSE's previous board came under fire for approving the package. Thain's compensation package, $2 million in pay and $2 million in bonuses, is a third of that of Grasso's pay in 2002.

YOUR E-MAIL ALERTS Follow the news that matters to you. Create your own alert to be notified on topics you're interested in. Or, visit Popular Alerts for suggestions. Manage alerts | What is this?

Thain, the former Goldman Sachs executive who has been the NYSE's chief executive for just three weeks, also said Amy Butte will become the new chief financial officer of the NYSE.

Butte will replace Keith Helsby, who Thain said was retiring as CFO.

"We're very pleased and excited to have her on board and think it's a great hire and it's a great opportunity for the exchange," said Thain.

The rule changes will be filed with the Securities and Exchange Commission Friday morning.  

From staff and Reuters reports